HOUSEHOLD DEBT WOE

HOUSEHOLD borrowing has soared as families take on loans to cope with red-hot price rises.

Consumer credit, which includes credit cards and personal loans, climbed £1.8bn in June, according to Bank of England data, overshooting expectations of a £1bn rise. Of that, £1bn was new lending on credit cards. Savings have fallen significantly below their pre-pandemic average, as deposits increased by £1.5bn, the lowest in four years.

Mortgage approvals fell to 63,726, their lowest level since March 2019 in a sign that potential buyers were wary to part with cash.